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Sonata Software Ltd (SONATSOFTW) Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating

BSE: 532221 NSE: SONATSOFTW | IT - Software | Small Cap

Sonata Software Share Price

255.20 -8.50 (-3.22%)
As on 30-Apr'26 16:59

Sonata Software Ltd (SONATSOFTW)

BSE: 532221 NSE: SONATSOFTW
Key Metrics
Market Cap
₹7,156 Cr.
P/E Ratio
32.46
Price to Book (P/B)
8.57
Price to Sales (P/S)
5.86
EV/EBITDA
22.16
Return on Capital Employed (ROCE)
31.72%
Current Price
₹255.2
Return on Equity (ROE)
28.88%
Return on Assets (ROA)
20.11%
Operating Profit Margin
7.8%
Net Profit Margin
21.56%
Gross Profit Margin
25.8%
Book Value per Share
₹29.8
Sales Growth (YoY)
4.32%
Sales Growth (3 Years)
9.35%
Operating Profit Growth (1 Year)
1.46%
Operating Profit Growth (3 Years)
-19.44%
Net Profit Growth (1 Year)
-40.42%
52-Week Low / High
₹209 / 464
Net Profit Growth (3 Years)
-3.13%
Dividend Yield
1.27%
Promoter Holding
28.17%
Pledged shares (%)
of Promoter's holding (%)
0.00%

Check Before You Invest

Q.1 Stock return of Sonata Software Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.6% based on the current price.
Q.1 Revenue growth of Sonata Software Ltd?
Sonata Software Ltd revenue growth is 4.3% for FY-2025, which is above its 5-year CAGR of 2.48%, indicating faster growth.
Q.1 Which industry/sub-sector does Sonata Software Ltd belong to?
Sonata Software Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.1 Promoter shareholding and pledge status of Sonata Software Ltd?
Promoters hold 28.17% of the Sonata Software Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Revenue growth of Sonata Software Ltd vs industry peers?
Sonata Software Ltd revenue CAGR is 2.48%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

DeciZen - make an informed investing decision on Sonata Software

Based on:

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Sonata Software stock performance

Key Ratios
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Is Sonata Software Ltd an attractive stock to invest in?

1. Is Sonata Software Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sonata Software Ltd is a good quality company.

2. Is Sonata Software Ltd undervalued or overvalued?

The key valuation ratios of Sonata Software Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sonata Software Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sonata Software Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray :

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sonata Software Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 39.7%39.6%41.4%46.7%61.7%57.6%52.5%48.2%61%31.7%-
Value Creation
Index
1.81.82.02.33.43.32.92.64.41.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5055936898298777817589219509911,222
Sales YoY Gr.-17.4%16.2%20.5%5.7%-10.9%-3%21.5%3.2%4.3%-
Adj EPS 3.94.44.86.37.46.48.1812.97.57.9
YoY Gr.-12.2%9.3%30.9%16.8%-13.2%26.3%-0.7%60.4%-42.1%-
BVPS (₹) 12.916.917.719.213.41920.519.62528.429.8
Adj Net
Profit
110122134175204177224222357207220
Cash Flow from Ops. 82.497.314937.1281188152-54.6-191-21.3-
Debt/CF from Ops. 1.2000000-0-00-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.8%2.5%9.4%4.3%
Adj EPS 7.4%0.2%-2.7%-42.1%
BVPS9.2%16.2%11.4%13.5%
Share Price 16.6% 3.7% -15.7% -39.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
30.729.527.834.145.139.340.739.556.727.427
Op. Profit
Mgn %
25.22523.227.825.529.918.414.17.67.810.3
Net Profit
Mgn %
21.820.619.421.123.322.729.524.237.620.918
Debt to
Equity
0.3000000000-
Working Cap
Days
221178134142147240267194276314134
Cash Conv.
Cycle
425253656939254211618699

Recent Performance Summary

Sales growth is good in last 4 quarters at 27.53%

Return on Equity has declined versus last 3 years average to 27.00%

Sales growth has been subdued in last 3 years 9.35%

Net Profit has been subdued in last 3 years -2.67%

Latest Financials

Standalone Consolidated
TTM EPS (₹) 7.9 15.7
TTM Sales (₹ Cr.) 1,222 10,782
BVPS (₹) 29.8 66.9
Reserves (₹ Cr.) 807 1,849
P/BV 8.57 3.81
PE 32.46 16.21
From the Market
52 Week Low / High (₹) 208.50 / 464.20
All Time Low / High (₹) 2.38 / 867.10
Market Cap (₹ Cr.) 7,156
Equity (₹ Cr.) 28
Face Value (₹) 1
Industry PE 22.7

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of Sonata Software - Standalone Basis

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

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No data found!

Key Ratios

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales505593689829877781758921950991
Operating Expenses > + 378445529603675548619799879918
Manufacturing Costs23273854472653785850
Material Costs1274547646195102752
Employee Cost 286307364405467413415544670776
Other Costs > 67848297984856757591
Operating Profit > 1271481602262012341391217273
Operating Profit Margin (%) 25.1%25.0%23.2%27.3%23.0%29.9%18.4%13.2%7.6%7.3%
Other Income > + 403443199945167168334188
Exceptional Items > 0600000000
Interest > 440011109755
Depreciation > 4456211918192121
Profit Before Tax > 159179198239269250280264380235
Tax > 41464767577145442121
Profit After Tax 117133151172211179235220359214
PAT Margin (%) 23.3%22.5%22.0%20.8%24.1%22.9%31.0%23.9%37.8%21.6%
Adjusted EPS (₹)4.24.85.56.27.66.58.57.912.97.7
Dividend Payout Ratio (%)80.60%70%72.10%76.80%99.60%81.30%92.80%99.10%61.10%57.10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 360467490531370527569544693787
Share Capital 11101010101010142828
Reserves 350457479521360517559530666759
Debt +97000000100
Long Term Debt0000000000
Short Term Debt97000000100
Minority Interest0000000000
Trade Payables3239585278931011098665
Others Liabilities 137395163184551244261289205
Total Liabilities 6265455996466321,1719149151,0681,057

Fixed Assets

Net Fixed Assets +181920201038470566345
Gross Block992329341211179985111104
Accumulated Depreciation814914183329294858
CWIP 0000000000
Investments 961361991495698143846478
Inventories0000000000
Trade Receivables125160185289230192162308520665
Cash Equivalents 186137126861562813011938784
Others Assets 201936810287517238274334185
Total Assets 6265455996466321,1719149151,0681,057

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 829714937281188152-55-191-21
PBT 159179198239269250280264380235
Adjustment -22-17-9-27-41-22-116-122-292-141
Changes in Working Capital -17-31-9-1021234138-132-226-116
Tax Paid -37-33-32-73-70-82-50-65-531
Cash Flow From Investing Activity + -31505661146-77077393157
Capex -10-5-5-6-8-1-4-18-18-4
Net Investments 5-24-538097-38-36-57100-6
Others -2678113-135632109152311167
Cash Flow From Financing Activity + -79-143-114-143-360-57-204-251-232-131
Net Proceeds from Shares 0000000043
Net Proceeds from Borrowing 0000000000
Interest Paid -4-3-0-00-0-0-0-0-0
Dividend Paid -140-36-95-118-293-41-187-232-219-123
Others 65-104-19-25-67-16-17-18-16-12
Net Cash Flow -27590-456712318-228-294

Finance Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)32.7332.2131.6233.7946.8839.8942.9139.5957.9828.88
ROCE (%)39.6739.641.3646.7461.757.652.4948.1661.0231.72
Asset Turnover Ratio0.851.011.21.331.370.870.731.010.960.93
PAT to CFO Conversion(x)0.70.730.990.221.331.050.65-0.25-0.53-0.1
Working Capital Days
Receivable Days81.9087.7091.40104.2010898.5085.1093159218.10
Inventory Days0000000.10000
Payable Days8,789.30487.70391429372.40514.50373.40373471.600

Top 5 Mutual Funds Holding

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Announcements

Sonata Software Ltd FAQs

The current trading price of Sonata Software on 30-Apr-2026 16:59 is ₹255.2.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 29-Apr-2026 the market cap of Sonata Software stood at ₹7,156.4 Cr

The latest P/E ratio of Sonata Software as of 29-Apr-2026 is 32.46.

The latest P/B ratio of Sonata Software as of 29-Apr-2026 is 8.57.

The 52-week high of Sonata Software is ₹464.2 and the 52-week low is ₹208.5.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sonata Software is ₹1,222 ( Cr.) .

About Sonata Software Ltd

Sonata Software is the leading Modernization company. The company’s unique Modernization approach through Platformation.AI helps create Efficient and Agile digital businesses to drive intelligent ecosystems of the future. Its bouquet of Modernization Engineering Services cuts across Data, Cloud, Dynamics, Automation, Cyber Security, and around newer technologies like Generative AI, Microsoft Fabric, and other modernization platforms.

The company’s unique and innovative Responsible-first AI offering Sonata Harmoni.AI is a comprehensive platform powered by GenAI and encompasses a variety of industry solutions, service delivery platforms, and accelerators. It is distinguished by its embedded ethics, privacy, security, and compliance. The company enables its clients to leverage AI in three different ways: i) driving efficiencies, ii) driving higher consumer experience/modern sales, and iii) driving innovative business models.

Headquartered in Bengaluru, India, the company has a strong global presence, including key regions North America, UK, Europe, APAC, and ANZ. The company is one of the fastest growing IT Services companies and a trusted partner of Fortune 500 companies in Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media, and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space.

The company boasts of a very strong partnership with Microsoft, AWS and many others. The company is proud member of Microsoft AI Partner Council and has also achieved AWS Generative AI Competency. Also, the company is member of the prestigious Inner Circle for Microsoft Business Applications and Featured and Launch Partner for Microsoft Fabric.

Business area of the company

The company is the leading AI-first Modernization Engineering company and is engaged in providing IT services and solutions to customers globally, with a presence in the USA UK, Europe, ANZ, APAC, and distribution of software products in India. The company's consolidated operations include Indian and overseas subsidiaries.  

Awards

  • 2009: Winner in the Deloitte Technology Fast 500 Asia Pacific 2009 Program
  • 2011: Listed among Global Services Top 100 Companies for FY 2010-2011
  • 2011: Featured in Global Services’ list of Emerging Infrastructure Management Vendors and Top Speciality Product Engineering Vendors for FY 2010-2011
  • 2011: Ranked among Top 50 companies by Dataquest for FY 2010-2011
  • 2012: Ranked 6th in the Software Products segment by Zinnov Management Consulting Pvt. Ltd.
  • 2012: Sonata’s travel extensions & integrations over and above the core Hybris platform bagged Most Innovative Partner Award for the year 2012: Travel domain expertise
  • 2018: Siemens names Sonata Software the ‘Most Value-added Partner of the year 2018'
  • 2018: IBM awards ‘Best Software Partner of the Year – Commercial Segment’ to Sonata Software for the year 2018.
  • 2018: Featured in the leadership zone of service providers in two key categories - Independent Software Vendors (ISVs) and Consumer Software Service Providers by Zinnov Management Consulting Pvt. Ltd. Sonata has also been ranked as an established, niche R&D service provider on the overall front
  • 2018: Sonata Software has been assessed at CMMI Level 5 (Version 1.2-Development Model) for its development centers in Bangalore and Hyderabad
  • 2019: MS certified Platform solutions - Brick & Click and Modern Distribution 2018-19
  • 2020: UiPath has certified Sonata Software as Gold Tier Partner 2020
  • 2020: Sonata Information Technology Limited is now IBM Software - Platinum Business Partner 2020
  • 2022: Sonata Software bagged the coveted Golden Peacock Award for Excellence In Corporate Governance 2022, second time in a row.
  • 2023-24: Bronze Medal from EcoVadis ESG Rating FY23 showcasing its performance in ESG policies, measures, impact and disclosures
  • 2023-24: Received B rating which represents Sonata is amongst 27% of companies that reached the management level
  • 2023-24: Sonata has participated in S&P global CSA and received an ESG score of 54
  • 2023-24: Sonata Software has become a signatory to the United Nations Global Compact (UNGC)
  • 2023-24: Sonata received Certificate of Appreciation by ICSI Business Responsibility and Sustainability Awards, 2023
  • 2023-24: Runner-up for Outstanding Demonstration of its Sustainability by INFHRA Awards 2023 – Sustainability 
  • 2023-24: ‘Single-use Plastic Free’ (SuPF) Certification
  • 2024-25: Enterprise Innovator in HFS Horizons – Healthcare Payer Service Providers 2024.
  • 2024-25: Major Contender in Everest Group Peak Matrix for Low Code Application Development Services - Focus on Microsoft Power Apps 2024.
  • 2024-25: Major Contender in Everest Group Peak Matrix Retail and CPG Data, Analytics, and AI Services.
  • 2024-25: Aspirant in Everest Group Peak Matrix for Data & Analytics Services 2024.
  • 2024-25: Aspirant in Everest Group Peak Matrix for AI and Gen AI Services 2024.
  • 2024-25: Disruptor in HFS Horizons - Azure Ecosystem Service Providers 2024.
  • 2024-25: Disruptor in HFS Horizons - AADA (AI, Analytics, Data platforms & Automation) Services 2024.
  • 2024-25: Disruptor in HFS Horizons - Best Service Providers for Commercial Banks 2025.
  • 2024-25: Disruptor in HFS Horizons - Generative Enterprises 2025.
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About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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